Developer Offers NHS Contribution for Affordable Housing in Rattray

A building firm from Banchory has voluntarily proposed a contribution of up to £77,250 to the NHS as part of a housing development in Rattray, Scotland. The Perth and Kinross Council (PKC) Planning and Placemaking Committee unanimously approved plans for the construction of 103 affordable homes on a site formerly used as a piggery during a meeting on January 7, 2024. This decision comes despite the absence of any existing requirements for developers in the region to contribute to NHS funding.

Bancon Construction submitted a planning application to construct 83 houses and 20 flats on a site located 90 meters east of Westfields of Rattray, covering just under four hectares. While NHS Tayside did not object to the application, the Perth and Kinross Health and Social Care Partnership raised concerns about the potential added pressures on existing primary care services if the development were to proceed.

Developer’s Surprise Offer

During the committee meeting, Richard Fawcus, the partnership land director for Bancon Construction, made an unexpected offer to contribute up to £750 per unit to the NHS facility. He stated this commitment would be included in a section 75 agreement, a legal provision allowing local authorities to require developers to contribute to local infrastructure.

Councillor Keith Allan questioned whether the council could accept this voluntary offer or impose conditions on it. PKC officers appeared surprised by the proposal, with Kristian Smith, the manager of Development Management and Building Standards Service, expressing caution. He noted that the site had been allocated in the development plan after consultation with the NHS in 2019, without any concerns being raised at that time.

Smith added, “Looking at the response we’ve had recently, it would show there are some capacity concerns but it wouldn’t be reasonable now for us to seek contribution when we said no contributions were required previously.” He suggested that the discussion of the developer’s offer should occur outside the planning process.

Local Councillors Respond

Local councillor Bob Brawn expressed a desire not to overlook the developer’s offer, proposing the creation of a section 75 agreement to benefit from the contribution. However, Colin Elliot, PKC solicitor, highlighted the voluntary nature of the offer and the complexities involved in determining which local NHS project would benefit from the funds. He explained, “There are difficulties in terms of what it would actually do, in terms of a project.”

Councillor Richard Watters, a member of the Scottish National Party (SNP), supported the application and was eager to explore the implications of the developer’s offer. He acknowledged the complexities of implementation but emphasized the importance of addressing health concerns in tandem with housing needs.

As part of the planning consent, Bancon Construction will also contribute £29,817 towards the maintenance of a nearby BMX track, enhancing community amenities alongside new housing.

Brawn welcomed the proposal, stating that the former piggery site was currently “a bit of an eyesore.” He underscored the urgent need for affordable housing in the area, noting, “Sometimes it’s not the building we need, sometimes it’s the GPs.”

With the application receiving unanimous approval, this development marks a significant step towards addressing housing shortages while also prompting discussions about healthcare infrastructure in the region. The collaboration between Bancon Construction and local authorities could set a precedent for future developments in Perth and Kinross.